Traditionally, classified advertisements and other newspaper, specialty paper, and magazine advertisements and listings provide a way for a seller of goods or services to advertise in an attempt to obtain a buyer for the goods or services. However, when a transaction is agreed upon, the buyer and seller enter an awkward time, particularly when the transaction takes place across a great geographical distance. The persons and smaller businesses taking advantage of classified advertisements and similar listings do not typically accept payment by credit card or bank debit card. Checks and money orders are generally used. The buyer may send a check or money order by letter to the seller, and the seller may either simultaneously with the sending of the funds or upon receipt of the funds, send the goods to the buyer. The buyer and seller must trust one another. Each runs the risk of encountering a swindle and being the victim of fraud. The same applies when services are purchased over a great distance. In addition, there is a delay in the buyer receiving the goods or services when the seller waits for a check to be mailed and then clear before shipping the item or activating the service.
On-line sale facilitating systems have given new life to person to person long distance sale of goods and services. Rather than selling via local magazines, specialty papers, and newspaper classifieds and listings, persons are using on-line sale facilitating systems to sell locally, nationally and internationally via the Internet.
The Internet and personal computers have become ubiquitous in modern society. Although the Internet has existed in various forms for many years, the Internet became popular as a mass communication vehicle with the introduction of the world wide web. The world wide web is, from the user's perspective, a way of easily identifying a remote computer, connecting to the remote computer, and viewing information stored on the remote computer. Remote computers that provide a vehicle for the sale of goods and services have become very popular. These systems are referred to herein as sale facilitating systems. EBAY® is an example of a sale facilitating system. However, even with this new technology, buyers and sellers must still trust one another as each still runs the risk of encountering a swindle and being the victim of fraud while funds and goods are exchanged by mail.
While using the Internet, hidden from the user are the various communications protocols that make the Internet function. Various committees and ad hoc groups known as working groups coordinate and control the Internet. The Internet Engineering Task Force (IETF) is the protocol engineering and development arm of the Internet. Working groups under the IETF determine the rules and protocols for the underlying functionality of the Internet and publish them as requests for comment, commonly referred to as RFCs. Each working group makes its RFCs available via the Internet at various web sites. Information is communicated over the Internet via the transmission control protocol/Internet protocol (TCP/IP) and hypertext transfer protocol (HTTP). Many personal computers utilize the point to point protocol (PPP) to communicate with an internet service provider to obtain a link to the Internet. More information is available from T. Socolofsky and C. Kale, A TCP/IP Tutorial, RFC 1180, January 1991, http://www.ietf.org/rfc/rfc1180.txt; R. Fielding et al., Hypertext Transfer Protocol—HTTP/1.1, RFC 2616, June 1999 (Draft Standard), http://www.ietf.org/rfc/rfc2616.txt; and W. Simpson, Editor, The Point-to-Point Protocol, RFC 1661, http://www.ietf.org/rfc/rfc1661.txt.
To make on-line and off-line purchases easier, payment facilitators that allow buyers to purchase from sellers via credit cards and debit cards eliminate the uneasiness of long distance purchases originating from traditional classified advertisements, on-line classified advertisement, on-line sale facilitating systems such as EBAY®, and others. To make their service safe and secure, payment facilitators should check for potential fraudulent transactions when processing payment transactions.